Umbrella Companies
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  1. #1

    Nervous Newbie


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    Default Umbrella Companies

    Hi folks,

    I am new here and would like some tips from people who aren't novice in this area.

    I recently started working as a contractor, and the recruitment agency that got me the role recommended an umbrella company they claimed to have a good relationship with.

    As I had to commence work the following Monday, I agreed to use the umbrella company. To my dismay when I was to get paid at the end of the month, they sent me an email saying a different hourly rate which isn't a match with the agreed rate in my contract will reflect on my timesheet. This also mean I will get paid less.

    I worked a total of 171.35 hrs but they had 160hrs in my summary sheet.

    My Travel expenses for the month was 122 but they showed 80 on the summary sheet.

    I am really angry and confused as I know one thing for sure...This is a rip off!

    As a contractor, do i have to pay Employer's N.I apart from my normal Tax and N.I?

    Please enlighten me and I'd really be grateful if any experienced contractor can recommend a reliable umbrella company that won't rip me off.

    I am also considering legal action....Is it worth it?

    Many Thanks.

  2. #2

    Double Godlike!

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    Default

    Quote Originally Posted by clone5 View Post
    Hi folks,

    I am new here and would like some tips from people who aren't novice in this area.

    I recently started working as a contractor, and the recruitment agency that got me the role recommended an umbrella company they claimed to have a good relationship with.

    As I had to commence work the following Monday, I agreed to use the umbrella company. To my dismay when I was to get paid at the end of the month, they sent me an email saying a different hourly rate which isn't a match with the agreed rate in my contract will reflect on my timesheet. This also mean I will get paid less.
    That would have beena good time to ask why.


    I worked a total of 171.35 hrs but they had 160hrs in my summary sheet.
    as would this.

    My Travel expenses for the month was 122 but they showed 80 on the summary sheet.
    and this. You sure they got the right records?

    I am really angry and confused as I know one thing for sure...This is a rip off!
    No it's a mistake on a newly set up account.

    As a contractor, do i have to pay Employer's N.I apart from my normal Tax and N.I?
    Who else is going to pay it? Me?

    Please enlighten me and I'd really be grateful if any experienced contractor can recommend a reliable umbrella company that won't rip me off.
    No idea myself, but there's plenty of reccomends on these boards

    I am also considering legal action....Is it worth it?
    No. Grow up.
    Blog? What blog...?

  3. #3
    lje
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    Quote Originally Posted by clone5 View Post
    Hi folks,

    As I had to commence work the following Monday, I agreed to use the umbrella company. To my dismay when I was to get paid at the end of the month, they sent me an email saying a different hourly rate which isn't a match with the agreed rate in my contract will reflect on my timesheet. This also mean I will get paid less.

    I worked a total of 171.35 hrs but they had 160hrs in my summary sheet.

    My Travel expenses for the month was 122 but they showed 80 on the summary sheet.

    As a contractor, do i have to pay Employer's N.I apart from my normal Tax and N.I?
    Before getting all upset that the unbrella company is ripping you off you need to contact them and calmly explain that they have the wrong rate, number of hours worked and expenses. It sounds like they may have made a mistake. You have your contract to fall back on.

    You do have to pay employer's national insurance from your rate. It needs to be paid by someone and when you are contracting that someone is you.
    Loopy Loo

  4. #4

    My post count is Majestic

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    Why do people insist of getting told/asked for something they don't like and then coming and moaning on a public board before they have even asked the people involved why? Same with the photo question that is hovering around at the moment. Isn't it like the first thing that comes to anyones mind to then ask them a question to clarify before anything else?
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  5. #5

    Umbrella Queen

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    Default

    The payment that the umbrella company makes to you will be based on funds that they receive from your agency; if there is a discrepency on rate or hours you should first check that the agency hasn't made a mistake with your timesheet. However, I would have thought your umbrella should have given you an explanation as they would obviously be aware if an the amount received against the invoice was incorrect. What exactly was said on the email you received?
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